Orange County plans to launch a $300 million commercial paper program today to refinance $123 million of “Teeter plan” variable-rate demand obligations insured by Ambac Assurance Corp. and to expand the program’s capacity amid surging property tax delinquencies.

Counties collect property tax payments for local governments in California. Under Teeter programs, a county gives local governments tax payments as they come due, regardless of actual payments from taxpayers. In exchange, the county earns the penalties and interest that accrue on the delinquent taxes. The program smooths revenue receipts for smaller local governments and earns money for counties.

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